 Join
the International Marketing Program and the Food Export Association for the
2014 Midwest Buyers Mission in Grand Rapids, Michigan on Monday, July 21!
Companies have the opportunity to meet with foreign buyers for approximately 30
minutes right in your own backyard!
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 Over 20
international buyers will attend this event from Brazil, Canada, China,
Colombia, Costa Rica, Guatemala, Hong Kong, India, Latvia, Malaysia, Mexico,
South Korea, Taiwan, the UAE, the Philippines, Vietnam, and Turkey. Meetings will be one-on-one with buyers that
are pre-selected by you. As a participant you will have the opportunity to
establish new relationships with key industry players without even leaving
Michigan.
Products in Demand:
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Food Service and Retail Products
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Ethnic Foods
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Fresh/Organic/Healthy
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Frozen Foods
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Pet Food
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Private Label
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Specialty/Gourmet
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Other Processed Foods
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And Much MORE!
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 Registration, buyer profiles, and the
event flyer can be found by CLICKING
HERE.
The early registration deadline is May 19 for $250, and the
registration deadline is June 9 for $300.
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 The
International Marketing Program is welcoming two new interns, Allison Stuby and
Leighton Hackert, to our team for the summer. Allison and Leighton will work
closely with the Food Export Association of the Midwest as well as the
International Marketing Program. They will work on
Food Export events including buyer’s
missions, trade missions, and
seminars. Allison and Leighton will also work
with Michigan food and agricultural companies who
are interested in
exporting and utilizing Food Export programs
to increase international
sales.
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Allison
is currently a junior at Michigan State University where she is majoring in Comparative Cultures and Politics with additional
specializations in Public Relations and Business. Leighton is a junior at
Michigan State University majoring in Food Industry Management specializing in
Agribusiness Management. We look forward to having them join our team! |
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 Hannah Bollinger has recently joined the International Marketing Program full time, accepting a position as International Marketing Specialist with the Michigan Department of Agriculture and Rural Development.
Hannah joins the program as a recent graduate of Michigan State University where she earned a Bachelor’s of Science in Animal Science concentrated on Animal Industries with a specialization in Agribusiness Management and a Minor in Spanish. Previously, she interned for Food Export Midwest in the International Marketing Program office as well as the Michigan Grape and Wine Industry Council. While in school, she served in the College of Agriculture and Natural Resource’s Student Senate, was active as an officer in Block & Bridle, and was a member of the 2012 Michigan State University Livestock Judging Team.
In her new role Hannah will assist program manager, Jamie Zmitko-Somers, with supporting Michigan food and agricultural companies export their products to foreign markets. She is excited to work in the field of global trade while still being a part of Michigan’s agricultural industry. Hannah can be reached directly at bollingerh@michigan.gov or 517-284-5737.
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The Commodity Credit Corporation (CCC), part of the U.S.
Department of Agriculture (USDA), administers an export credit guarantee
program for commercial financing of U.S. agricultural exports. The program encourages exports to buyers in
countries where credit is necessary to maintain or increase U.S. sales, but
where financing may not be available without CCC guarantees.
The GSM-102 program is designed to promote the export of
U.S. agricultural products and facilitate the use of credit in transactions
where credit may not be feasible without the underwriting of the program. The credit guarantee essentially ensures that
the exporter or financing institution is compensated in the event of
non-payment by the buyer or their respective financial institution.
Each fiscal year $5.5 billion is made available for use
under the program. Fiscal year 2012 had
$4.1 billion in agricultural exports registered and in fiscal year 2013, $3
billion was registered in agricultural exports. The average annual registrations are around
$3 billion.
Since 1981, the GSM-102 program has facilitated the export
of U.S. agricultural products to foreign markets. Historically, the program has been heavily
used to support the export of bulk commodities such as feed grains, cotton,
oilseeds and wheat. However, a wide
range of intermediate and consumer-ready products, from apples to frozen french
fries are eligible for export under the program. A complete list of eligible commodities is
available on the FAS website. For a cost breakdown of
the GSM Fee Schedule, please click here.
Using a dollar-denominated letter of credit as the financial
instrument, foreign buyers and their banks may be provided with credit terms of
up to 2 years. CCC does not provide
direct financing, but guarantees payments due from foreign banks. Typically, 98 percent of principal and a
portion of interest at an adjustable rate are covered. Because payment is guaranteed, financial
institutions in the United States can offer competitive credit terms to the
foreign banks. Even though the fees are
risk-based, the average fees are in the neighborhood of 1 percent of the
transaction amount.
So, how does this work?
The CCC-approved foreign bank issues an irrevocable letter of credit in
favor of the U.S. exporter, which is usually advised or confirmed by an approved
U.S. bank which agrees to extend credit to the corresponding foreign bank. The U.S. exporter will present proof of
export to the U.S. bank and get paid by assigning the letter of credit to the
U.S. bank. If the foreign bank fails to make a payment as agreed, the exporter
or assignee must notify CCC.
Although the demand for U.S. agricultural goods has
increased overall buyers in emerging markets may have difficulty paying in cash
for every transaction. U.S. exporters
that can provide credit terms, extended payment periods, or allow the issuance
of a letter of credit are going to be the ones maintaining or increasing their
presence in these desired markets. The
use of the GSM-102 program makes this possible.
An example of a successful program is Turkey where fiscal
year 2013 saw $800 million in agricultural products registered under the
program. Commodities included everything from cattle hides to wood pulp and
helped ensure U.S. exporters remained competitive and maintained market share.
For additional information on the GSM-102 export credit
guarantee program, please visit the FAS website.
A Michigan contact you can reach at
Huntington Bank International Trade Finance is Craig Larsen, available at 248-244-3663.
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The Michigan
Department of Agriculture and Rural Development (MDARD) is offering a trade mission to South Korea with MDARD Director, Jamie Clover Adams. The trade mission is scheduled to take
place the week of August 25. Please, check your email for further
details which are coming soon!
Food Export is offering a Focused Trade Mission to South Korea for Bakery Ingredients. This is an ideal way to make international contacts and develop relationships with South Korean importers. Attend
the focused trade mission to South Korea and participate in one-on-one meetings
with prequalified buyers, a retail tour of several facilities that carry
specialty food items, a table-top products show case, interpreter services, and
much more! The focused trade mission will take place August 25 to August 26.
The cost to attend is $600, and registration ends June 2. For more information,
please click
here.
 The
landmark Korea-U.S. Free Trade Agreement (KORUS FTA) entered into force on
March 15, 2012. The agreement is expected to boost exports by billions of
dollars annually for both sides and create new export-related jobs in both South
Korea and the United States. For Michigan exports, South Korea is second only
to Canada in meat exports, which contributed to making South Korea was the
fourth largest market for American agricultural products in 2013.
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Michigan’s
Top Exports to South Korea in 2013:
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Meats - $16.8 million
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Dairy Products - $5.3 million
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Fruits - $2.2 million
Korean
consumers place value on high quality, low cost, health, and convenience in the
course of making food purchasing decisions. Increasing affluence, more women in
the workforce, and a well-traveled younger generation seeking goods with an
international flavor are promoting the rise of convenience stores, bulk retail
outlets, and western-style family restaurants. When considering the South Korean
market, exporters should conduct preliminary research to determine if the
market is appropriate for their product. It may not be possible to market the
exact same product in South Korea as in the United States. It is important to
note that South Korean consumers may have different demands and South Korean
regulations differ for some additives and preservatives.
Potential
importers can also be found by participating in next year’s Food
Show PLUS!
at Seoul Food and Hotel, which will enable exporters ability to showcase products
to a larger audience. Many South Korean importers attending these shows are
looking to establish, reliable, long-term trading relationships. Show
participation enhances initial contacts with importers, agents, wholesalers,
distributors, retailers, and others in the food and beverage industry. In addition, Food Export offers a webinar dedicated to market
insights on South Korea here.
Midwest
Buyers Mission
July 21-24,
2014
Grand
Rapids, MI
CLICK
HERE
Food
Ingredients Buyers Mission at the IFT Show
June 21-22,
2014
New Orleans,
LA
CLICK HERE
Focused Trade Mission to China
for Food Service and Healthy Products
August 12-14, 2014
Beijing and Chengdu, China
CLICK HERE
Focused Trade Mission to Korea
for Bakery Ingredients
August 25-26, 2014
Seoul, Korea
CLICK HERE
Focused Trade Mission to Canada
for Specialty and Natural Products
September 3-4, 2014
Toronto, Canada
CLICK HERE
The
International Marketing Program at the Michigan Department of Agriculture &
Rural Development (MDARD) is seeking company input for program development and
your input is needed to make the program even more beneficial to your company!
Below you’ll
find a link for a brief survey reviewing current programs and activities from
the International Marketing Program.
Your thoughts on how to improve will be used going forward in planning
future activities.
Please, take
a few minutes and answer the questions, when you are finished, simply click
‘done’. You may choose to submit the survey anonymously; however, knowing your
company’s needs provides greater opportunity for assistance.
Once again,
your feedback and input is greatly appreciated! If you have any questions or
comments, please contact Jamie Zmitko-Somers at zmitkoj@michigan.gov or call 517-284-5738.
Survey Location: https://www.surveymonkey.com/s/2014EXPORT
Follow us on Twitter for valuable insider information about upcoming events, services, export trends, links, and news at www.twitter.com/MIAgExport.
The
International Marketing Program is on Facebook https://www.facebook.com/MiAgExport. Visit our page to get updates on upcoming
opportunities, view pictures from previous events and connect with others who
are interested in the world of exports. We will also use this platform to share
program updates.
The International Marketing Program has been featured in the following blogs. Take a moment and check them out!
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learning resources on global business activities. GlobalEDGE was first created
by the International Business Center at Michigan State University and is partially
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globalEDGE can do for you at http://globaledge.msu.edu/.
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